Economy - overviewItaly has a diversified industrial economy with roughly the same total and per capita output as France and the UK. This capitalistic economy remains divided into a developed industrial north, dominated by private companies, and a less-developed, welfare-dependent, agricultural south, with 20% unemployment. Most raw materials needed by industry and more than 75% of energy requirements are imported. Over the past decade, Italy has pursued a tight fiscal policy in order to meet the requirements of the Economic and Monetary Unions and has benefited from lower interest and inflation rates. The current government has enacted numerous short-term reforms aimed at improving competitiveness and long-term growth. Italy has moved slowly, however, on implementing needed structural reforms, such as lightening the high tax burden and overhauling Italy's rigid labor market and over-generous pension system, because of the current economic slowdown and opposition from labor unions. But the leadership faces a severe economic constraint: Italy's official debt remains above 100% of GDP, and the government has found it difficult to bring the budget deficit down to a level that would allow a rapid decrease in that debt. The economy continues to grow by less than the euro-zone average and growth is expected to decelerate from 1.9% in 2006 and 2007 to under 1.5% in 2008 as the euro-zone and world economies slow. GDP (purchasing power parity)$1.8 trillion (2007 est.) GDP (official exchange rate)$2.068 trillion (2007 est.) GDP - real growth rate1.9% (2007 est.) GDP - per capita (PPP)$31,000 (2007 est.) GDP - composition by sectoragriculture: 1.9% Population below poverty lineNA% Household income or consumption by percentage sharelowest 10%: 2.3% Inflation rate (consumer prices)1.7% (2007 est.) Investment (gross fixed)20.6% of GDP (2007 est.) Labor force24.86 million (2007 est.) Labor force - by occupationagriculture: 5% Unemployment rate6.7% (2007 est.) Distribution of family income - Gini index33 (2005) Budgetrevenues: $976 billion Public debt105.6% of GDP (2007 est.) Industriestourism, machinery, iron and steel, chemicals, food processing, textiles, motor vehicles, clothing, footwear, ceramics Industrial production growth rate1.3% (2007 est.) Electricity - production278.5 billion kWh (2005) Electricity - consumption307.1 billion kWh (2005) Electricity - exports1.109 billion kWh (2005) Electricity - imports50.26 billion kWh (2005) Oil - production164,800 bbl/day (2005 est.) Oil - consumption1.732 million bbl/day (2005 est.) Oil - imports2.182 million bbl/day (2004) Oil - exports521,400 bbl/day (2004) Oil - proved reserves621.7 million bbl (1 January 2006 est.) Natural gas - production11.49 billion cu m (2005 est.) Natural gas - consumption82.64 billion cu m (2005 est.) Natural gas - exports379.8 million cu m (2005 est.) Natural gas - imports70.45 billion cu m (2005) Natural gas - proved reserves217.3 billion cu m (1 January 2006 est.) Current Account Balance-$57.94 billion (2007 est.) Agriculture - productsfruits, vegetables, grapes, potatoes, sugar beets, soybeans, grain, olives; beef, dairy products; fish Exports$474.8 billion f.o.b. (2007 est.) Exports - commoditiesengineering products, textiles and clothing, production machinery, motor vehicles, transport equipment, chemicals; food, beverages and tobacco; minerals, and nonferrous metals Exports - partnersGermany 13.2%, France 11.7%, US 7.6%, Spain 7.3%, UK 6.1% (2006) Imports$483.6 billion f.o.b. (2007 est.) Imports - commoditiesengineering products, chemicals, transport equipment, energy products, minerals and nonferrous metals, textiles and clothing; food, beverages, and tobacco Imports - partnersGermany 16.7%, France 9.2%, Netherlands 5.6%, China 5.2%, Belgium 4.2%, Spain 4.1% (2006) Reserves of foreign exchange and gold$69 billion (31 December 2007 est.) Debt - external$2.345 trillion (30 June 2007) Stock of direct foreign investment - at home$294.8 billion (2006 est.) Stock of direct foreign investment - abroad$375.8 billion (2006 est.) Market value of publicly traded shares$798.2 billion (2005) Economic aid - donorODA, $3.641 billion (2006) Currency (code)euro (EUR) Exchange rateseuros per US dollar - 0.7345 (2007), 0.7964 (2006), 0.8041 (2005), 0.8054 (2004), 0.886 (2003) Fiscal yearcalendar year |
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Source: CIA World Factbook | |